@ STATEMENT ON HOUSING, RDP AND MASAKHANE CAMPAIGN

Issued by: Gauteng Provincial Government

PRESS STATEMENT ON HOUSING, RDP AND MASAKHANE CAMPAIGN BY THE MEC FOR HOUSING AND LOCAL GOVERNMENT, MR DAN MOFOKENG ON THURSDAY 30TH NOVEMBER 1995

The purpose of today's press conference is to inform you about the five policy instruments that have been finalised in order to facilitate the provincial programme for housing development.

HOUSING POLICY INSTRUMENTS

As you have frequently reported and we have acknowledged delivery of housing has not been at the desired rate and these policy instruments have been designed specifically to unblock the delivery process.

• Policy guidelines in respect of institutional subsidies:

Institutional subsidies will be made available to groups or organisations for the purchase or building of residential property and make it available to their members or individual households who qualify for a subsidy. Institutions will also be able to raise additional finance from financial institutions to facilitate the provision of an improved housing product.

The Gauteng Government has been pressing for this subsidy scheme to be implemented since the beginning of the year. We have already received 33 applications amounting to 3000 units in the Johannesburg inner city in terms of institutional subsidy. Among those is the Seven Buildings Project.

• Progress payments - amendments to parts 3, 4 and 5 of the Housing subsidy Implementation Manual:

Progress payments will allow for the division of the subsidy amount and payment against the achievement of five milestones

• Approval of engineering design and specification by the local authority;
• Approval of the general plan by the Surveyor General
• Handover of services to the local authority;
• Transfer of individual properties to the name of the subsidy beneficiary and;
• The remainder on completion of the house

The Gauteng Province initiated the discussion on this policy particularly to help emerging developers and contractors who have difficulty in accessing working capital for projects.

• Amendments to the hostels upgrading policy to provide greater flexibility in the application thereof and to promote equity and affordability on a countrywide basis;

The amendments are to facilitate improvement of hostel accommodation and to promote equity and affordability. The hostels upgrading policy amendment envisages a funding limit of R15 000 per family and R3 750 per individual. Up to 15% variable can be paid on the rehabilitation support grant at the discretion of the Provincial Housing Board.

• Revised guidelines in respect of the Extended Benefits to Promote Home ownership (also known as the Transfer of Housing Programme) (R7 500 discount benefit) and enhancement of the Housing Subsidy Scheme.

The revised guidelines seek to address practical problems within the extended benefit scheme such as those experience with the pre-emptive purchase rights belonging to the government which through the revision are to be waived.

In terms of this scheme we have received claims for 56 996 houses which is 47% of the total number of households eligible.

The Province has identified the following six special projects for implementation over the next 9 months:

• Publicly serviced sites to be made available for development by emerging developers and contractors. 10 000 sites are available. The first pilot project in terms of this programme is the Alexander Far East Bank where show houses have already been built. The full project will commence early in the new year.
• Essential services to be provided to informal ser of sites to be provided in the first stage is 17 376 sites: In a number of areas construction has already started including: Langaville/Tsakane, Heidelberg, and Klip Kruisfontein.
• Rapid Land Development Programme to deal with land pressure and homelessness with the objective of rapidly releasing 18270 serviced sites and complete development at a later stage. The Provincial Housing Board has approved 5 000 units as part of the first phase.
• An Inner City Programme including the conversion of office and warehouse space and the rehabilitation of residential buildings. A total of R50million has been allocated through the institutional subsidies by the Provincial Housing Board. The institutional subsidy programme will also facilitate the provision of 1500 transitional units for accommodating the homeless. As mentioned earlier we have received application for 3000 units and are being processed.
• The repair of damaged houses outside Katorus, located in Alexandra, Meadowlands/Dobsonville and Sebokeng/Bolipatong area.

IT IS IMPORTANT TO NOTE THAT BECAUSE OF THE DELAYS IN DELIVERY BY DEVELOPERS WE HAVE DECIDED TO CANCEL 5 PROJECTS AMOUNTING TO 3346 SITES. THIS IS A CLEAR SIGNAL FROM GOVERNMENT THAT WE WILL TAKE ACTION TO ENSURE THAT DELIVERY TAKES PLACE.

RECONSTRUCTION AND DEVELOPMENT PROGRAMME

Achievements in the reconstruction and development in Katorus are the initiation of 135 projects in the area including the repair of violence damaged houses which were identified in the Katorus business plan. The following has been achieved:

• Up to 928 claims have been received;
• deeds searches have been undertaken in terms of 812 claims;
• 323 houses have been evaluated;
• 264 claims have been approved and tenders issued;
• 51 contracts have been awarded.

In Vosloorus Ext 28, 80 homes a month are being completed in a project that comprises 1532 houses of which 1500 have already been sold and 150 are now occupied. The smallest home costs R17 850 and the largest, 30square metres cost R20 500.

There are 10 publicly owned hostel in Katorus comprising a total of around 28 500 beds and to date the upgrading of the Nguni hostel in Vosloorus is 56% completed and 190 jobs have been created. The Sotho hostel is 82% complete and 112 jobs have been created. Work on hostels in Thokoza and Katlehong will begin early next year.

More than 2 200 sites in the informal settlements of Phola Park will be serviced by the end of December of which 1620 are already serviced. Further funding for the improvement of sites in Pinnoy Farm and Germiston Local Coucil have been approved for 1995
96 financial year.

In terms of the stabilisation campaign in the area 34 satellite police stations have been established and a further 17 police vehicles provided.

The main roads in the area have been repaired and cleaned.

Floodlighting, traffic lights, and street lights have been repaired and upgraded. Road signs have been replaced.

The Hleziphi school in Mngadi section is being refurbished and will be ready for the next school term.

IN TOTAL 7740 JOBS HAVE BEEN CREATED SINCE THE START OF THE KATORUS SPECIAL PRESIDENT PROJECT.

The Masakane campaign has succeeded in the following:

• Raising people's awareness of payment of services. The following are some of the areas in which payment levels are showing an upward trend:

September October JHB CBD 85,1% 103,1% Soweto 17,5% 24,4% Sebokeng 7,6% 9,3% Boipatong 10,5% 15,8% Sharpeville 1,3% 4,5% Tokoza 13,3% 17,1% Wattville 16,8% 31,8%

Nevertheless this situation still has to improve dramatically. Critical to ensuring that the campaign succeeds will be the localisation of the campaign and a continued programme of raising people's awareness to ensure that payment levels continue to rise to satisfactory levels.

Amongst others:

- A MASAKHANE Strategic Planning Team is in the process of being formed to input into the MASAKHANE campaign programme. The team will comprise Government, Civics, Labour, Business and Community based organisations.

- A Gauteng Masakhane Summit is being planned for early next year, and will be attended by all political parties, NGOs, and all other stakeholders. The Summit will map out collective strategic interventions to ensure that the Campaign delivers results. What should emerge is a tripartite working partnership between government, business and community based organisations.

- Key to the Campaign will be an educational programme directed at communities. Various mediums of education will be used.

- Capacity building for Local Authorities will receive priority to ensure that billing and administrative systems are upgraded and pay points increased.

To kick off this process there will take place a Masakhane Rally (Festival) on the 23rd December 1995 at Mofolo Park (Soweto). The Masakhane Campaign Trail will run in Gauteng from the 5th to the 23rd of December.

PROPOSED MASAKHANE ROUTE LIST - GAUTENG

Date Town No. of No. of shows days 05/12/95 Tsakane 1 1 05/12/95 Kwa Thema 1 1 06/12/95 Daveyton 1 1 06/12/95 Wattville 1 1 07/12/95 Mabopane 1 1 07/12/95 Soshanguve 1 1 08/12/95 Ivory Park 1 1 08/12/95 Tembisa 1 1 09/12/95 Duduza 1 1 09/12/95 Ratanda 1 1 11/12/95 Vosloorus 1 1 11/12/95 Germiston 1 1 12/12/95 Katlehong 1 1 12/12/95 Tokoza 1 1 13/12/95 Kagiso Ext 13 1 1 13/12/95 Munsieville 1 1 14/12/95 Swannieville 1 1 14/12/95 Mhlakeng 1 1 15/12/95 Khutsong 1 1 15/12/95 Bekkerdal 1 1 16/12/95 Bophelong 1 1 16/12/95 Boipetong 1 1 18/12/95 Sharpville 1 1 18/12/95 Sebokeng 1 1 19/12/95 Evaton 1 1 19/12/95 Palm springexandra 1 1 20/12/95 Jhb Centre 1 1 21/12/95 Atridgeville 1 1 21/12/95 Pretoria Centre 1 1 22/12/95 Diepsloot 2 1